Record Revenue and EPS Amidst Global Challenges
-
Revenue: $124.3 billion, up 4% year over year, an all-time record.
-
EPS: $2.40, up 10% year over year, an all-time record.
-
iPhone Revenue: $69.1 billion, reaching all-time records in several markets.
-
Mac Revenue: $9 billion, up 16% year over year.
-
iPad Revenue: $8.1 billion, up 15% year over year.
-
Wearables, Home, and Accessories Revenue: $11.7 billion, down 2% year over year.
-
Services Revenue: $26.3 billion, up 14% year over year, an all-time record.
-
Gross Margin: 46.9%, up 70 basis points sequentially.
-
Net Income: $36.3 billion, an all-time record.
-
Operating Cash Flow: $29.9 billion.
-
Installed Base: Over 2.35 billion active devices, an all-time high.
-
Capital Return: Over $30 billion returned to shareholders, including $23.3 billion in share repurchases.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
Apple Inc (NASDAQ:AAPL) reported an all-time high revenue of $124.3 billion for the December quarter, marking a 4% increase year over year.
-
The company achieved all-time revenue records across multiple regions, including the Americas, Europe, Japan, and Asia Pacific, with strong momentum in emerging markets.
-
Services revenue reached an all-time record of $26.3 billion, growing 14% year over year, with significant growth in both developed and emerging markets.
-
Apple’s installed base of active devices reached a new record of over 2.35 billion, driven by high customer satisfaction and loyalty.
-
The introduction of Apple Intelligence features has been well-received, contributing to stronger iPhone sales in markets where it is available.
-
Greater China revenue declined by 11% year over year, with over half of the decline attributed to changes in channel inventory.
-
Wearables, Home, and Accessories revenue decreased by 2% year over year, facing challenges compared to the previous year’s product launches.
-
Foreign exchange headwinds are expected to negatively impact revenue by about 2.5 percentage points in the upcoming quarter.
-
The company faces competitive pressures in China, where Apple Intelligence has not yet been rolled out, affecting iPhone replacement cycles.
-
Operating expenses increased by 7% year over year, reaching $15.4 billion, which may impact future profitability if not managed effectively.
Q: Tim, can you elaborate on how Apple Intelligence is impacting iPhone demand and which features are most popular? A: We observed stronger year-over-year performance for the iPhone 16 family in markets where Apple Intelligence was available. Popular features include writing tools, Image Playground, Genmoji, and visual intelligence. Clean Up is also well-received, especially in-store demos.
